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On a Recent Sale,Boeing Allowed British Airways to Pay Either

Question 61

Multiple Choice

On a recent sale,Boeing allowed British Airways to pay either $18 million or £10 million.


A) At the due date,British airways will be indifferent between paying dollars or pounds since they would of course have hedged their exposure either way.
B) Boeing has provided British Airways with a free option to buy $18 million with an exercise price of £10 million.
C) Boeing has provided British Airways with a free option to sell up to £10 million with an exercise price of $18 million.
D) all of the options

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